Stocks are expected to open higher this morning on the strength of gains in U.S. futures.

Procter & Gamble Co. predicts its earnings will exceed those forecast, and this is inspiring hope for a profit recovery.

One firm that won’t be beating any earnings forecast is BCE Inc. It announced today that it expects 2002 earnings to be less than analysts were expecting. The firm says revenue growth will be in the range of 6% to 8%.

In economic news, the U.S. current account deficit narrowed to US$95 billion in the third quarter. Imports are dropping as the recession bites into spending.

In Europe, stocks look gloomier. Drug firms are at the centre of the weakness with names such as AstraZeneca plc sliding. Merck & Co. confessed after the close yesterday that competition from generic drugmakers will hurt its profit growth in 2002. Also, U.K. unemployment rose for a second straight month in November.

The FTSE is down 11 points to 5,149. The CAC 40 is down 22 points to 4,529. The German DAX is weakest, down 56 points to 5,090.

Overnight in Asia stocks rallied led by the techs. The Nikkei gained 328 points to 10,801. In Hong Kong, the Hang Seng added 154 points to 11,847.

In other news, Pioneer Natural Resources Co. announced a 2002 development and exploration capital budget of $425 million.

IMAX Corp. says it has completed the sale of its wholly owned subsidiary Digital Projection International Ltd. to DPI CEO Brian Critchley. The terms of the transaction were not disclosed.